5 Best Drug Stocks to Buy Now

4. Eli Lilly and Company (NYSE:LLY)

Number of Hedge Fund Holders: 70

Eli Lilly and Company (NYSE:LLY) is an Indiana-based pharmaceutical company.

Eli Lilly and Company (NYSE:LLY) is spearheading the fight against Alzheimer’s disease through its anti-amyloid drug donanemab. The drug has received a priority review from the FDA. Furthermore, the company also received fast-track designation for its obesity care drug tirzepatide on October 6.

On September 30, Jasper Hellweg at Argus increased the target price from $315 to $360 and reiterated a Buy rating on Eli Lilly and Company (NYSE:LLY) stock. The analyst highlighted that Eli Lilly and Company (NYSE:LLY) is making major progress in its drug pipeline as it has received approvals for new drugs to treat alopecia areata, cancer, and type-2 diabetes. The approvals should boost the top line and bottom line of Eli Lilly and Company (NYSE:LLY) in the coming years, making it one of the best pharmaceutical stocks to hold in the long run.

Here’s what Baron Funds said about Eli Lilly and Company (NYSE:LLY) in its Q2 2022 investor letter:

“Eli Lilly and Company is a global pharmaceutical company focused on discovering, developing, and selling medicines for patients in the therapeutic areas of diabetes, oncology, immunology, and neuroscience. Stock performance was strong due to positive study results for Eli Lilly’s drug Tirzepatide (subsequently branded Mounjaro), which delivered up to 22.5% weight loss in adults with obesity. We think Tirzepatide is in the early innings of adoption in a large obesity market where penetration of anti-obesity medications is currently low. We continue to think Eli Lilly has a healthy base business with limited near-term patent expirations, a strong pipeline, and potential for significant margin expansion, which should translate to solid revenue and earnings growth over many years.”